Travel Expenses - Tax law allows you to deduct two types of travel expenses related to your business, local and what the IRS calls "away from home".
First, local travel expenses. You can deduct local transportation expenses incurred for business purposes, for example the cost of getting from one location to another via public transportation, rental car, or your own automobile.
Second, you can deduct away from home travel expenses-including meals and incidentals; however, if your employer reimburses your travel expenses, your deductions are limited.
LOCAL TRANSPORTATION COSTS
The cost of local business transportation includes rail fare and bus fare, as well as the costs of using and maintaining an automobile used for business purposes. For those whose main place of business is their personal residence, business trips from the home office and back are considered deductible transportation and not non-deductible commuting.
AWAY FROM-HOME TRAVEL EXPENSES
You can deduct one-half of the cost of meals (50%) and all of the expenses of lodging incurred while traveling away from home. The IRS also allows you to deduct 100% of your transportation expenses--as long as business is the primary reason for your trip. For no obligation free consultation contact us today!
Amare Berhie, Tax Advisor
612-282-3200
866-936-0430 Toll Free
No comments:
Post a Comment